Fleet management market to double by 2020


New research suggests active users of fleet management solutions will pass 1.1 million by 2020

 

The number of active fleet management systems to be deployed in commercial vehicle fleets in Australia and New Zealand is predicted to reach 1.1 million by 2020.

According to research from M2M/IoT analyst firm Berg Insight, the current rate of growth in the industry will see the numbers dramatically increase from the 0.5 million total recorded in Q4-2015.

Increasing at a compound annual growth rate of 16.0 percent, research from the Fleet Management in Australia and New Zealand report says the local fleet management market is being driven by regulatory developments, such as health and safety regulations, road user charges, and electronic work diaries.

In terms of those supplying the transport industry, the research says the market is headed by Teletrac Navman, which it says is "established as the leading provider in terms of subscriber base in the region, holding a strong position in both Australia and New Zealand."

Teletrac Navman is the result of a merger between Navman Wireless and Teletrac by parent company Fortive announced last month.

The acquisition and subsequent rebrand also comes on the back of a February acquisition of in-vehicle equipment provider Transtech, the first company to gain Transport Certification Australia (TCA) approval for its product.  

However the market is far from a monopoly according to senior analyst Rickard Andersson, who says the "fleet management solution market in Australia and New Zealand is served by a variety of players ranging from small local vendors to leading international solution providers."

Alongside Teletrac Navman, he says "other major players on the market include EROAD, IntelliTrac, MTData and Smartrak which are all based in the region."

Also with a "comparably strong presence" are fellow local suppliers Ezy2c and Coretex as well as international vendors MiX Telematics, Ctrack, and Geotab.

While relatively small at this stage, Andersson says there are also a number of commercial vehicle original equipment manufacturers (OEMs) entering the space, either working independently or in partnership with solution suppliers.

"The adoption levels for the OEM telematics initiatives however remain relatively modest and the market is so far clearly dominated by aftermarket solution providers serving fleets directly," he says.

 

 

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